Year end may seem far away. But now’s a good time to start looking ahead to what itemized deductions you may be able to claim for the 2016 tax year.
Following is a list of selected deduction and exclusion items to consider. Don’t use the list as a tax planning worksheet. Rather, think of it as an exercise to help with your tax planning efforts and a good conversation starter for the next time we visit. Bear in mind that various limitations may apply to the items listed.
Deductible unreimbursed employee expenses:
- Business travel expenses
- Business education expenses
- Professional organization or chamber of commerce dues
- License fees
- Impairment-related work expenses
- Depreciation on home computers your employer requires you to use in work
Deductible money management costs:
- Tax preparation fees
- Depreciation on home computers used to produce investment income
- Investment interest expenses
- Dividend reinvestment plan service charges
- Loss of deposits due to financial institution insolvency
Deductible personal expenditures:
- Income, real estate and personal property taxes (state, foreign and local)
- Medical and dental expenses
- Qualifying charitable contributions
- Personal casualty and theft losses
- Income excludable from taxable income:
- Health and most life insurance proceeds
- Military allowances and veterans benefits
- Some scholarship and grant proceeds
- Some Social Security benefits
- Workers’ compensation proceeds
I joined the firm in 1997 as an intern and since have advanced to partner. I have thorough experience in both audit and tax, and provide these services to commercial entities, individuals and profit-sharing 401(k) plans.
